Identifier
Created
Classification
Origin
04ABUDHABI2033
2004-06-21 13:43:00
CONFIDENTIAL//NOFORN
Embassy Abu Dhabi
Cable title:
UAEG DECLINES TO PROVIDE FURTHER INFO ON GAS
how-tonull Diana T Fritz 02/06/2007 05:35:41 PM From DB/Inbox: Search Results Cable Text: CONFIDENTIAL SIPDIS TELEGRAM June 21, 2004 To: No Action Addressee Action: Unknown From: AMEMBASSY ABU DHABI (ABU DHABI 2033 - ROUTINE) TAGS: EPET, PGOV, BEXP, ENRG, ECON, EINV Captions: None Subject: UAEG DECLINES TO PROVIDE FURTHER INFO ON GAS NEGOTIATIONS WITH IRAN Ref: None _________________________________________________________________ C O N F I D E N T I A L ABU DHABI 02033 SIPDIS Laser1: INFO: FCS CXABU: ACTION: ECON INFO: P/M AMB DCM POL DISSEMINATION: ECON CHARGE: PROG APPROVED: CDA: RALBRIGHT DRAFTED: ECON: CCRUMPLER CLEARED: CGD: JDAVIS; POL: JMAYBURY VZCZCADI457 RR RUEHC RUEHZM RUEHDE RUCPDOC RHEBAAA RUEHLO RUEHFR DE RUEHAD #2033 1731343 ZNY CCCCC ZZH R 211343Z JUN 04 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC 4795 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE RUEHDE/AMCONSUL DUBAI 4079 RUCPDOC/USDOC WASHDC RHEBAAA/DEPT OF ENERGY WASHDC RUEHLO/AMEMBASSY LONDON 0808 RUEHFR/AMEMBASSY PARIS 0848
C O N F I D E N T I A L ABU DHABI 002033
SIPDIS
NOFORN
E.O. 12958: DECL 06/21/08
TAGS: EPET PGOV BEXP ENRG ECON EINV TC IR
SUBJECT: UAEG DECLINES TO PROVIDE FURTHER INFO ON GAS
NEGOTIATIONS WITH IRAN
REFS: ABU DHABI 1540 AND PREVIOUS
C O N F I D E N T I A L ABU DHABI 002033
SIPDIS
NOFORN
E.O. 12958: DECL 06/21/08
TAGS: EPET PGOV BEXP ENRG ECON EINV TC IR
SUBJECT: UAEG DECLINES TO PROVIDE FURTHER INFO ON GAS
NEGOTIATIONS WITH IRAN
REFS: ABU DHABI 1540 AND PREVIOUS
1. (U) Classified by Charge d'Affaires, a.i. Richard A.
Albright, for reasons 1.5 (B) and (D).
2. (C/NF) In a June 14 meeting with Econoff, Chief
Operating Officer of Mubadala (and former Projects Manager
for UAE Offsets Group) Khaldoon Al-Mubarak (protect) said
the UAEG would not provide further details about its
negotiations with Tehran for the supply of gas to the UAE
(refs) because of the possible negative repercussions such
discussions could have on the project. He said that a
decision to conclude a gas supply agreement with Tehran
would be part of a broader effort to normalize UAE-Iranian
relations -- including a resolution to the long-standing
issue of the disputed islands of the Greater and Lesser
Tunbs and Abu Musa.
3. (C/NF) When asked if the UAE's preliminary discussions
with Tehran about the supply of gas indicated that Iran is
less of a security threat to the UAE than in years past,
Al-Mubarak responded that he was unsure about the senior
UAE leadership's perception of Tehran. "Some days they're
concerned, other days it's no big deal." He noted that the
younger generation of leaders certainly is less concerned
about Iran as an existential threat, and perceive internal
security and terrorism as the priority for the UAEG.
Although Al-Mubarak declined to name the "younger
generation" of leaders, he noted that his boss Shaykh
Mohammed bin Zayed Al-Nahyan (MbZ) was "very progressive"
in his views toward Iran. He noted that not a single U.S.
policymaker asked MbZ about the possible Iranian gas deal
during his recent trip to Washington - "clearly [U.S.
policymakers] are less concerned about our discussions with
Iran than the U.S. Embassy [in Abu Dhabi]."
4. (C/NF) Speaking generally, Al-Mubarak said that the
price of Qatari gas via the Dolphin project is competitive
and Iranian cost of production higher because of U.S.
sanctions against Tehran. He suggested, however, that Iran
is eager to make political and economic inroads with the
Gulf countries and would be willing to take a loss
initially to undercut Qatar and conclude gas supply
agreements with Kuwait, UAE and others. Al-Mubarak also
said that the Gulf countries likewise were looking to
diversify sources of gas and not rely entirely on Qatar.
Al-Mubarak said that Iran's probable source of gas to the
Arabian Gulf would be the South Pars field.
5. (C/NF) Comment: The UAEG is weighing carefully the
political repercussions of a gas deal with Tehran, and
balancing those concerns with the UAE's critical future
energy requirements. If the UAEG intends to predicate the
gas agreement with Iran on resolution of the disputed
islands, it could be a very long time before such an
agreement is reached. On the other hand, a gas deal could
be a first step toward an eventual resolution of the
islands dispute within the context of warming relations.
Such a position would allow UAE companies to move forward
with their plans to import Iranian gas. End comment.
6. (U) This cable was coordinated with Congen Dubai.
Albright
SIPDIS
NOFORN
E.O. 12958: DECL 06/21/08
TAGS: EPET PGOV BEXP ENRG ECON EINV TC IR
SUBJECT: UAEG DECLINES TO PROVIDE FURTHER INFO ON GAS
NEGOTIATIONS WITH IRAN
REFS: ABU DHABI 1540 AND PREVIOUS
1. (U) Classified by Charge d'Affaires, a.i. Richard A.
Albright, for reasons 1.5 (B) and (D).
2. (C/NF) In a June 14 meeting with Econoff, Chief
Operating Officer of Mubadala (and former Projects Manager
for UAE Offsets Group) Khaldoon Al-Mubarak (protect) said
the UAEG would not provide further details about its
negotiations with Tehran for the supply of gas to the UAE
(refs) because of the possible negative repercussions such
discussions could have on the project. He said that a
decision to conclude a gas supply agreement with Tehran
would be part of a broader effort to normalize UAE-Iranian
relations -- including a resolution to the long-standing
issue of the disputed islands of the Greater and Lesser
Tunbs and Abu Musa.
3. (C/NF) When asked if the UAE's preliminary discussions
with Tehran about the supply of gas indicated that Iran is
less of a security threat to the UAE than in years past,
Al-Mubarak responded that he was unsure about the senior
UAE leadership's perception of Tehran. "Some days they're
concerned, other days it's no big deal." He noted that the
younger generation of leaders certainly is less concerned
about Iran as an existential threat, and perceive internal
security and terrorism as the priority for the UAEG.
Although Al-Mubarak declined to name the "younger
generation" of leaders, he noted that his boss Shaykh
Mohammed bin Zayed Al-Nahyan (MbZ) was "very progressive"
in his views toward Iran. He noted that not a single U.S.
policymaker asked MbZ about the possible Iranian gas deal
during his recent trip to Washington - "clearly [U.S.
policymakers] are less concerned about our discussions with
Iran than the U.S. Embassy [in Abu Dhabi]."
4. (C/NF) Speaking generally, Al-Mubarak said that the
price of Qatari gas via the Dolphin project is competitive
and Iranian cost of production higher because of U.S.
sanctions against Tehran. He suggested, however, that Iran
is eager to make political and economic inroads with the
Gulf countries and would be willing to take a loss
initially to undercut Qatar and conclude gas supply
agreements with Kuwait, UAE and others. Al-Mubarak also
said that the Gulf countries likewise were looking to
diversify sources of gas and not rely entirely on Qatar.
Al-Mubarak said that Iran's probable source of gas to the
Arabian Gulf would be the South Pars field.
5. (C/NF) Comment: The UAEG is weighing carefully the
political repercussions of a gas deal with Tehran, and
balancing those concerns with the UAE's critical future
energy requirements. If the UAEG intends to predicate the
gas agreement with Iran on resolution of the disputed
islands, it could be a very long time before such an
agreement is reached. On the other hand, a gas deal could
be a first step toward an eventual resolution of the
islands dispute within the context of warming relations.
Such a position would allow UAE companies to move forward
with their plans to import Iranian gas. End comment.
6. (U) This cable was coordinated with Congen Dubai.
Albright